Any opinions on Kalaloch Lodge? We have heard some about it and want to know advice from anyone that has stayed there.

I've stayed there...the location is absolutely gorgeous, right above the beach. If you want to be in the midst of the Olympic National Park coast, it's pretty much the only choice. But don't expect luxury...the rooms and cabins are very basic (almost depressingly so), and rather expensive for what you get (true of most of the National Park lodges in the NW, IMO). If you plan on being out hiking, etc. and don't have high expectations of the room (or the food), then you'll be fine there.

Kalaloch is a good example of hotels near national parks (where development is highly restricted) abusing their near-monopoly locations (Denali NP in Alaska being another.) Sheri's got it right. Plus, if you haven't made reservations yet, and if you want a cabin, you're probably too late. Note I didn't even ask when you're considering coming...
There are a couple of places on or near Lake Quinault which, while not offering immediate coastal accommodation, are better value IMO.

I loved staying there , it was in August==cold and windy . It is rustic but that is part of its charm....
Go do it!!!

Do you have suggestions where to stay in the area that may be a bit nicer?

There really is very limited accommodation available right on the coast (except camping). Near Kalaloch, though, you might check out the following:
http://www.visitlakequinault.com/
http://www.lakequinault.com/
The choices improve on the northern edge of the park, around Crescent Lake and Port Angeles, but it's a fairly long drive to the coastal strip and rain forest valleys.